The Fixed Deposit
We all know that investing in fixed deposit for a short period of time will give you more return whereas if you go for long-term investment, these interest rates are considerably low. So, what is the solution? How are we going to gain more from a fixed deposit? The answer is Non-Banking Financial Companies (NBFCs). This is because the interest rate is better in NBFCs.
On the contrary, a unit trust investment company takes the money from the investors and then invests them optimally in shares of selected companies which are listed on stock exchanges around the world. Unit trusts (UT) do not come with a fixed term. Under UT, you can buy in and leave the time you want. FD even today remains to be one of the safest forms of investment.
There are various factors like returns, fees, security and accessibility which need to be studied to understand the significance of a fixed deposit. For example: Under fixed deposits (FD) the returns are guaranteed and vary from 4-9%. There are various fees involved in fixed deposits such as withdrawal, deposits, etc. To know other factors in details about Fixed Deposit and Unit Trust.
Read about FD Vs Equities: Which is better
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.